asterisk users - Sep 2004 - Refer Method

hi;
Does asterisk handle the "refer method"?  If we use asterisk as both a
sip proxy and a GW what would happen to POTS leg  (SIP --> * --> POTS) 
after that send client send a "refer" request which refers the POTS 
destination to let's say another SIP phone?

thanks
m. smadi